PART-1 General Information: Study of Brand Positioning of Nestle Maggi and Nissin Top Ramen

Study of Brand Positioning of Nestle Maggi And Nissin Top Ramen
PART-1
GENERAL
INFORMATION
PARUL INSTITUTE OF MANAGEMENT 1

1-INDUSTRY OVERVIEW
It is challenging to find an inclusive way to cover all aspects of food production
and sale. The Food Standards Agency, a government body in the UK, describes it
thus:
"...the whole food industry – from farming and food production, packaging and
distribution, to retail and catering.”
The Economic Research Service of the USDA uses the term food system to
describe the same thing:
"The U.S. food system is a complex network of farmers and the industries that link
to them. Those links include makers of farm equipment and chemicals as well as
firms that provide services to agribusinesses, such as providers of transportation
and financial services. The system also includes the food marketing industries that
link farms to consumers and which include food and fiber processors, wholesalers,
retailers, and foodservice establishments.”
1.1. Industry size

Processed food sales worldwide are approximately US$3.2 trillion (2004).
In the U.S., consumers spend approximately US$1 trillion annually on food, or

nearly 10 percent of the Gross Domestic Product (GDP). Over 16.5 million people
are employed in the food industry.
In the United Kingdom, the food industry is extensive. It employs well over half a
million people and has a turnover in excess of £70bn. It is the largest
manufacturing sector in the UK and represents around 15% of the total
manufacturing sector in the UK. Around 13% of the people working in
manufacturing in the UK work in the food and drink industry

1.2. Food processing

Food processing is the methods and techniques used to transform raw ingredients into
food for human consumption. Food processing takes clean, harvested or slaughtered and
butchered components and uses them to produce marketable food products. There are
several different ways in which food can be produced.
One off Production This method is used when customers make an order for something
to be made to their own specifications, for example a wedding cake. The making of
One off Products could take days depending on how intricate the design is and also the
ability of the chef making the product.
Batch Production This method is used when the size of the market for a product is not
clear, and where there is a range within a product line. A certain number of the same
goods will be produced to make up a batch or run, for example at Gregg's Bakery they
will bake a certain number of chicken bakes. This method involves estimating the
amount of customers that will want to buy that product.
Mass production this method is used when there is a mass market for a large number of
identical products, for example, chocolate bars, ready meals and canned food. The
product passes from one stage of production to another along a production line.
Just in Time this method of production is mainly used in sandwich bars such as
Subway. All the components of the product are there and the customer chooses what
they want in their product and it is made for them fresh in front of them.

1.3. Wholesale and distribution

A vast global transportation network is required by the food industry in order to
connect its numerous parts. These include suppliers, manufacturers, warehousing,
retailers and the end consumers. There are also companies that add vitamins, minerals,
and other necessary requirements during processing to make up for those lost during
preparation. Wholesale markets for fresh food products have tended to decline in
importance in OECD countries as well as in Latin America and some Asian countries
as a result of the growth of supermarkets, which procure directly from farmers or
through preferred suppliers, rather than going through markets.
The constant and uninterrupted flow of product from distribution centers to store
locations is a critical link in food industry operations. Distribution centers run more
efficiently, throughput can be increased, costs can be lowered, and manpower better
utilized if the proper steps are taken when setting up a material handling system in a
warehouse.
1.4 Retail
With populations around the world concentrating in urban areas, food buying is
increasingly removed from all aspects of food production. This is a relatively recent
development, having taken place mainly over the last 50 years. The supermarket is the
defining retail element of the food industry, where tens of thousands of products are
gathered in one location, in continuous, year-round supply. Restaurants, Cafes,
Bakeries and Mobile trucks are also ways consumers can purchase food.
Food preparation is another area where change in recent decades has been dramatic.
Today, two food industry sectors are in apparent competition for the retail food dollar.
The grocery industry sells fresh and largely raw products for consumers to use as
ingredients in home cooking. The food service industry by contrast offers prepared
food, either as finished products, or as partially prepared components for final
"assembly".

1.5. Food industry technologies

Sophisticated technologies define modern food production. They include many areas.
Agricultural machinery, originally led by the tractor, has practically eliminated human
labor in many areas of production. Biotechnology is driving much change, in areas as
diverse as agrochemicals, plant breeding and food processing. Many other areas of
technology are also involved, to the point where it is hard to find an area that does not
have a direct impact on the food industry. Computer technology is also a central force,
with computer networks and specialized software providing the support infrastructure
to allow global movement of the myriad components involved.
1.6. Marketing
The role of product creation, advertising, and publicity become the primary vehicles
for information about food. With processed food as the dominant category, marketers
have almost infinite possibilities in product creation.
1.7. Media & Marketing

A key tool for FMCG marketing managers targeting the supermarket industry includes
national titles like The Grocer in the U.K., Checkout in Ireland, Progressive Grocer in
the U.S., and Private Label Europe for the entire of the European Union.
1.8. Research and development

Research in agricultural and food processing technologies happens in great part in
university research environments. Projects are often funded by companies from the food
industry. There is therefore a direct relationship between the academic and commercial
sectors, as far as scientific research.

1.9. Prominent Food Companies

The instant noodle market is dominated by MNCs; very few local players have a sizeable
presence. Some of the key players in the market along with their brands are:
1. Nestle (Maggi)
2. Hindustan Unilever (Knorr Soupy Noodles)
3. GlaxoSmithKline Consumer Healthcare (Foodless)
4. Capital Foods Ltd. (Ching's Secret)
5. ITC (Sun feast Yippee noodles)
6. CG Foods India Pvt. Ltd. (waiwai)
7. Future Group (tasty Treat)

2. COMPANY OVERVIEW
2.1. NESTLE-MAGGI
2.1.1. Introduction to Maggi
Maggi is a Nestle brand of instant soups, stocks, bouillon cubes, ketchups, sauces,
seasonings & instant noodles. The original company came into existence in 1872 in
Switzerland, when Julius Maggi took over his father’s mill. It quickly became a pioneer
of industrial food production, aiming at improving the nutritional intake of worker
families. It was the first to bring protein-rich legume meal to the market, which was
followed by ready-make soup based on legume meal in 1886. In 1897, Julius Maggi
founded the company Maggi in the German town of Singe where it is still established
today.
Maggi comes to India – teething troubles Maggi noodles was launched in India in the
early 1980s.Carlo M Donati, the president Chairman and Managing Director of Nestle
India Ltd, brought the instant noodle brand to India during his short stint here in the early
eighties. At that time there was no direct comparison. The first competition came from
the ready-to-eat snack segment which included snacks like samosas, biscuits or may be
homemade snacks like pakoras or sandwiches. So there were no specific buy and make
snack! Moreover both competitors had certain drawbacks in comparison. Snacks like
samosas are usually bought out and outside food is generally considered unhygienic and
unhealthy. The other competitor „homemade‟ snacks overcame both these problems but
had the disadvantage of extended preparation time at home. Maggi was positioned as the
only hygienic homemade snack! Despite this, Nestle faced difficulties with their sales
after the initial phase. The reason is the positioning of the product with the wrong target
group. Nestle had positioned Maggi as a convenience food product aimed at the target
group of working women who hardly found any time for cooking.
Unfortunately, this could not hold the product for very long. In the course of many
market researches& surveys, the firm found that children were the biggest consumers of
Maggi noodles. Quickly they repositioned it towards the kids segment with the various
tools of sales promotion like color pencils, sketch pens, fun books, Maggi clubs which
Worked wonders for the brand.

Maggi was positioned as „2-minute noodles‟ with a punch line that said „Fast to cook!
Good to eat! ‟and this gave the implied understanding to the consumer that it was a
„between meals‟ snack. The company could have easily positioned the product as a meal,
either lunch or dinner. But, it chose not do so, because the Indian consumer mindset
noodles would have been futile. The firm did not position it as a „ready-to-eat‟ meal
either as the housewife prefers to „make‟ a meal for her kids rather than buy it for them.
And if she can make it in two minutes with very little effort, then obviously it’s a hit with
her! What’s more, if kids also love the taste, the product is as good as sold! So the 2-
minute‟ funda coupled with the „yummy taste worked‟.
2.1.2. BRAND STORY

Launched in 5 flavors initially – Masala, Chicken, Capsicum, Sweet & sour, and
Lasagna – Maggi had to fight hard to be accepted by the Indian consumers with their
hard-to-change eating habits. The packaged food market was very small at this time;
Nestle had to promote noodles as a concept, before it could promote Maggi as a brand. It
therefore devised a two-pronged strategy to attract mothers on the „convenience‟ plank
and lure kids on the „fun‟ plank. Gradually, the market for instant noodles began to
grow. The company also decided to focus on promotions to increase the brand
awareness. In the initial years, Nestle promotional activities for Maggi included schemes
offering gifts (such as toys & utensils) in return for empty noodles pack.
According to analysts the focus on promotions turned out to be single largest factor
responsible for Magi’s rapid acceptance. Nestlé’s Managers utilized promotions as
measured to meet their sales target. Gradually, sales promotion became a crutch for
Maggi noodles sales. Later many of the Magi’s extensions also made considerable use
of promotional schemes. The focus of all Magi’s extensions was more on below the line
activities rather than direct communication. In addition to promotional activities, Maggi
associated itself with main stream television programme and advertised heavily on kids
programme and channels. After its advertisements with taglines like “mummy
bhookhlagihai, bas do minute” and fast to cook good to eat Maggi popularity became
highly attributed to extremely high appeal to children. As a result, Maggi
Annual growth was 15% in its initial years
2.1.3. Maggi in India

Maggi owned by Nestle is a brand that created a category for itself in the Foods market
in India. The brand which is famous for the Noodles has evolved into the umbrella
brand for Nestle in the Food segment.
Nestle launched its noodles in the Indian market in the early 1980's. Nestle wanted to
explore the potential for such an Instant food among the Indian market. It took several
years and lot of money for Nestle to establish (I would say create) its Noodles brand in
India. Now it enjoys around 50% market share in this segment which is valued at
around 250 cores.
Maggi has faced lot of hurdles in its journey in India. The basic problem the brand
faced is the Indian Psyche. Indian Palate is not too adventurous in terms of trying new
tastes. That may be the reason why we are still stuck with Idli and Sambhar.
So a new product with a new taste that too from a different culture will have difficulty
in appealing to Indian market.
Initially Nestle tried to position the Noodles in the platform of convenience targeting
the working women. But it found that the sales are not picking up despite heavy
promotion .Research then showed that Kids were the largest consumers of the brand.
Realizing this, Nestle repositioned the brand towards the kids using sales promotions
and smart advertising.
Now Indians are the largest eaters of Maggi Noodles in the world. Maggi Noodles is a
marketing success story. During 1997 Maggi changed its formulation. It was during
that time that Indo Nissin - a Japanese company launched its Noodles brand "Top
Ramen" with lot of promotion and with SRK endorsing the brand. TopRamen gave
Maggi a run for its money. The change in taste of Maggi was a mistake. The
consumers rejected the new taste of Maggi. And in 1999 Maggi launched Noodles
with the original taste. Nestle was ready to accept the consumers verdict and it paid off
handsomely. Top Ramen could not sustain the growth it had for long

Maggi campaigns were revolved around its "convenience to make and good to eat”
qualities. Ready in “2 minutes “was a proposition that was well received by the
market.
In 2005 Nestle made a very smart move. It knew that although kids love noodles, the
parents were bothered about the health aspect of Noodles which was made of Maida.
Hence Maggi launched Maggi Atta Noodles with the baseline " taste bhi health bhi"
.Reports suggest that after 10 months of the launch , the product has been well
received by Indian consumers. A Maggi noodle is an example of a brand that knows
the customer and willing to learn from the mistakes.
Maggi also tried to leverage the success of the Noodles to other food products like
sauces, tastemakers, soups etc.
Maggi sauces need special mention because it is another success story. Maggi have a
market share of 45% in the 180crore ketchup market in India. Maggi leveraged the
brand equity very effectively. The product quality was good and the communication
was excellent. The brand was positioned as a "Different" sauce with the baseline “It’s
different".
Customers was intrigued as to what is different about the brand and was curious to try
the sauce (may be surprised to find nothing different, but that is marketing honey!).
The ads featuring Jawed and Pankaj kapoor was superb and funny. It was created by
JWT. The new campaigns are handled by Publicist and the baseline has been changed
ted to “enjoy the difference".
•There was no need to change the baseline, may be ad agencies have an ego problem
in accepting the creativity of another agency. So agencies change the baseline even at
the cost of the brand. In this case even though the new baseline “enjoy the difference"
was not very different from the old one, was it a change for the sake of change?
•I strongly feel that the brand managers should take the ownership of the brand and the
way it is communicated. If it is left to agency alone, every time the agency changes,
the Communication changes.
•Maggi after its long and tough journey is enjoying its well deserved success. Let us
wait and watch for more journeys of Maggi.

2.2. NISSIN-TOP RAMEN

2.2.1. Introduction to Nissin top ramen
Nissin Foods is a world-wide company that makes instant ramen noodles. It was
established in Japan on September 4, 1948 by Momofuku Ando as Nissin Food Products
Co., Ltd. of Japan (Nisshin Shokuhin Kabushiki-gaisha) and ten years later introduced
the first instant ramen noodle product, Chikin Ramen (Chicken Ramen). They established
a US subsidiary Nissin Foods in 1970 and sold instant ramen noodle products under the
name Top Ramen. Instant noodles (1958) and cup noodles (1971) were both invented by
Momofuku Ando. Nissin Foods has its headquarters in Yodogawa-ku, Osaka. The
company moved to its current headquarters in 1977, when the construction of the
building was completed.
Nissin Foods has established offices and factories in various countries, such as Brazil
(since 1981), Hong Kong (since 1985), India (since 1992), Germany (since 1993),
Thailand (since 1994), China (since 1995) and Mexico (since 2000). Their products are
also sold in Philippines, Taiwan, Singapore, Canada, Sweden, Malaysia and Australia.
Nissin Foods are also Purveyors to the Imperial House of Japan.
Nissin Foods is affiliated with Nisshin Seifun Group Inc., Nisshin OilliO Group, Ltd.,
Nisshinbo Holdings Inc. nor Nissin Healthcare Food Service Co., Ltd.

2.2.2. Products
• Nissin Top Ramen
• Nissin Chikin Ramen
• Nissin Cup Noodles
• DemaeItcho
• Doll Brand - created by Winner Food Products Limited (est. 1968), a subsidiary of
Nissin since 1984
• Chow Mein
• Bowl Noodles, Rich and Savory, and Hot and Spicy
• Spice Route Bowl and Boxes, Sichuan, Korean and Thai
• NuPasta Bowls and bags
2.2.3. Core Value-Quality policy

“We continuously strive to meet customer expectations and trust by providing affordable
products of good taste and convenience without compromising on quality.”

2.2.4. Quality & Commitment

2.2.4.1. “Assuring Ultimate Quality and Safety.”
NISSIN FOODS HOLDINGS has developed and operates its own rigorous food testing
and quality assurance system, which monitors handling and processing safety.
2.2.4.2. Safety as an exacting science

In 2002, we established the Food Safety Research Institute to develop a scientifically
based quality assurance infrastructure, allowing consumers and their families’ total trust
in our quality and safety. The institute monitors the quality of daily production through
on-site quality surveys and process control; it plays a critical role in ensuring the quality
of our products.
In April 2008 the Food Safety Research Institute obtained certification for ISO 17025
(the international standard for testing capabilities and management systems) and it
continues to upgrade its quality control systems.
2.2.4.3. Assuring food safety at the source

The Food Safety Research Institute also performs safety audits under Nissin
Inspection Standards for Food Safety (NISFOS), established in 2004. These audits cover
food safety management systems, manufacturing standards, facilities maintenance and
sanitation at the plants of raw materials suppliers. Evaluation is carried out objectively
using inspection checklists, and the inspection results are expressed numerically as
“Safety inspection points.” The institute provides remedial guidance and quality control
systems support to a factory that receives a low score.
2.2.4.4. Food safety in our Manufacturing

In manufacturing process quality control, the institute posts supervisors to supplier sites
to confirm “4M Control”, the confirmation of materials, methods, machines and
manpower involved in manufacturing processes.

3. OVERVIEW OF MARKET
3.1. OVERVIEW OF INDIAN NOODLES MARKET
“What Xerox is to photocopier and Colgate to toothpaste, Maggi is to noodles in India."
- The Economic Times, a prominent newspaper in India, in 2003.
"Maggi is the leader in the Instant Noodles category because it is constantly improving its
understanding of the consumer to give them excellent and tasty products that provide
nutrition, health, and wellness."
- Martial Rolland, chairman and managing director, Nestlé India Ltd., in 2006.
"Maggi has managed to enter Indian homes to change the traditional food habits of Indian
children on their promise of convenience. This brand has understood the psychology of
Indian mothers and positioned itself for mother-child indulgence."
- Business Week, a prominent business magazine, in 2006.

Indian noodle market (instant noodles) is estimated at INR 1,300 to 1,600 cores (USD
300 – USD 350 MN) in 2010. According to estimates, the market is expected to reach
INR 3,000-3,500 cores by 2015 clocking a CAGR of 20%. The market is dominated by
instant noodles and
Nestle brand – Maggi (which was first noodle brand to be introduced in India in mid
1980s). Nestle has virtually dominated the Indian noodle market till now but lately many
large FMCG players and retail chains have launched their products in this lucrative space.
Urbanization, rising income levels, working couples, interstate migration and changing
lifestyle of young India are key drivers for the noodles market. The product was
positioned as meal which is filling and can be prepared in just a few minutes, thus
offering both convenience and time saving.

Trends in Indian noodle market

1. Increasing competition: Competition in instant noodle category has intensified with
players such as GlaxoSmithKline (Horlicks Foodles), ITC (Sun feast Yippee noodles),
Capital Foods and Hindustan Unilever launching new products in the market. Private
label brands such as Tasty Treat by Future Group (Big Bazaar retail chain) have also
been launched an it is expected that many more private label brands may hit the market.
2. New product launches and extensive marketing: All players new or old have been busy
launching new products and marketing campaigns. Maggi has launched an extensive
campaign with their new product vegetable multigrain noodle. Tasty Treat increased its
variants from two to five. Similarly, Foodles is stressing on the health aspect of its
products.
3. Stress on health and wellness: As on all other food categories, players are stressing on
health and wellness aspects of their products. Maggi launched Atta noodles and
multigrain noodles to woo customers while Glaxo‟sFoodles also stresses on the
multigrain aspect of their product
4. Traditional flavors still dominate: Masala, chicken and tomato are most popular flavors
in the market
5. Addressing rural market: Noodles are primarily consumed in urban India and to
expand this market companies such as Nestle have introduced small sized and low cost
products to address the demand of rural market. The success of this effort is still to be
seen.

Opportunities in Indian noodle market

1. Health and wellness theme: Health and wellness theme based packaged food is gaining
popularity in India and the market of such noodles is still open as traditional player
Maggi is not associated with “health” but with convenience and taste.
2. Huge Rural market: rural India where close to 60% of Indian population resides is a
huge consumption market virtually un-penetrated by any player. Low cost products with
appropriate marketing can open up this huge market
3.2. Overview of world market

Expanding Market
National Trends in Instant Noodles Demands
Updated on May 10, 2014
Country / Region 2011 2012 2013 2014
1 China, Hong Kong 45,810 42,530 40,860 42,300

2 Indonesia 14,990 13,700 13,930 14,400
3 Japan 5,460 5,100 5,340 5,290
4 Vietnam 3,910 4,070 4,300 4,820
5 USA 3,900 3,950 4,080 3,960
6 Republic of Korea 3,220 3,340 3,480 3,410
7 India 1,230 1,480 2,280 2,940
8 Thailand 2,220 2,170 2,350 2,710
9 The Philippines 2,480 2,500 2,550 2,700
10 Brazil 1,500 1,690 1,870 2,000
11 Russia 2,710 2,400 2,140 1,900
12 Nigeria 1,080 1,400 1,600 1,670
13 Malaysia 1,180 1,210 1,200 1,220
14 Mexico 900 860 860 830
15 Taiwan 880 840 820 780

Growth of the Maggi Company
•Sales of CHF 60.9 billion, 7.3% organic growth, 4.1% real internal growth
•Market positions stronger across regions and categories
•Good growth in developed markets; double-digit growth in emerging markets
•Full-year outlook: slight over-performance against our 5-6% long-term organic growth
range and we continue to strive for a margin improvement in constant currencies
Paul Bulcke, Nestlé CEO: “In a tough environment, we continued to build our
capabilities and positions for the future while maintaining strong growth across regions
and categories. The constant renovation of our existing product portfolio together with
our strong pipeline of game-changing innovations resulted in many market share gains. A
high rate of innovation also requires significant consumer-facing marketing support. For
the year as a whole, in spite of input cost pressures, we expect to slightly over-perform
against our long-term organic growth range of 5-6% and continue to strive for a margin
improvement in constant currencies”.
Vevey, 20 October 2011 – In the first nine months of 2011, the Nestlé Group’s organic
growth was 7.3%, including 4.1% real internal growth and pricing of 3.2%. Foreign
exchange decreased sales by 15.1% and divestitures (mainly Alcon) net of acquisitions
by 5.7%.

PART-2
PRIMARY STUDY

INTRODUCTION OF THE STUDY

4.1. LITERATURE REVIEW
1) Journal of Marketing Management; Apr92, Vol. 8 Issue 2, p127-146, 20p
This paper examines the reasons for decisions to source a range of imported food items
by a large UK retailer, with emphasis upon a comparison of decisions for manufacturer
and retail brands. Previous studies of retail buying processes are reviewed with particular
emphasis on the food sector and retailer label products. Possible differences in buying
decisions for manufacturer and retailer labels are advanced. Results of the present study
show the importance of quality considerations, the search for product variety and close
matching of products to overall market positioning.
2) Dot Foods, Inc. Source: Dot Foods, Inc.; Jun2007, p1, 8p

A company profile of Dot Foods Inc., the largest food re-distributor in the U.S., is
presented. An overview of the company is given, along with key facts including contact
information, number of employees and revenues. A SWOT analysis is provided which
includes strengths, weaknesses, opportunities for improvement and threats.
3) McCormick& Company, Inc. Apr2007, p1, 9p

A company profile of McCormick & Co. Inc., which is engaged in the manufacture,
marketing and distribution of spices, herbs, seasoning blends and other flavors to the
entire food industry, is presented. An overview of the company is given, along with key
facts including contact information, number of employees and revenues. A SWOT
analysis is provided which includes strengths, weaknesses, opportunities for
improvement and threats.
4) Delhaize "Le Lion" SA; Jun2007, p5, 4p

A business analysis of Delhaize Group, a company engaged in the business of food
retailing, is provided, focusing on its strengths, weaknesses, opportunities for
improvement and threats to the company. Strengths include market leadership.
Weaknesses include declining revenue growth. Opportunities for improvement include

Growing demand for pharmaceuticals in the U.S. Threats to the company include intense
competition.
5) Frito-Lay; Jun2007, p1, 7p

A company profile of Frito Lay, a snack food division of PepsiCo, which is engaged in
the manufacture and distribution of a wide variety of snack foods, is presented. An
overview of the company is given, along with key facts including contact information,
number of employees and revenues. A SWOT analysis is provided which includes
strengths, weaknesses, opportunities for improvement and threats.
6) The Role of Location in the Fast Food Industry. Authors: Thomadsen,

Raphael1thomadsen@ucla.eduSource:Marketing Science; Nov/Dec2007, Vol. 26 Issue 6,
p792-804, 13p, A
This paper examines optimal product positioning strategies of asymmetric firms in the
context of retail outlet locations in the fast food industry. The relationships between
profits and product differentiation reveal that both McDonald's and Burger King are
better off avoiding close competition if the market area is large enough. However, in
small market areas, McDonald's would prefer to be located together with Burger King
rather than have the two outlets be only a slight distance apart. In contrast, Burger King's
profits always increase with greater differentiation. Offsetting these incentives is the
desirability of locating centrally to appeal to the most customers. The equilibrium
depends on the market's size
7) Dean Foods Company; Oct2007, p5, 5p,

A business analysis of Dean Foods Co., a food and beverage company engaged in
processing and distribution of milk and dairy products is provided, focusing on its
strengths, weaknesses, opportunities for improvement and threats to the company.
Strengths include leading market position. Weaknesses include customer concentration.
Opportunities for improvement include increasing health consciousness. Threats to the
company include increasing competition

8) Tate& Lyle, PLC SWOT Analysis; Mar2008, p5, 4p,

A business analysis of Tate & Lyle (T&L) PLC, a manufacturer of renewable food and
industrial ingredients is provided, focusing on its strengths, weaknesses, opportunities for
improvement and threats to the company. Strengths include strong market position.
Weaknesses include low returns. Opportunities for improvement include growing health
consciousness.
9) Koninklijke Wessanen NV; Jan2008, p1, 8p

A company profile of Koninklijke Wessanen NV, a multi-national food company that
offers natural and premium-taste food products, is presented. An overview of the
company is given, along with key facts including contact information, number of
employees and revenues. A SWOT analysis is provided which includes strengths,
weaknesses, opportunities for improvement and threats.
10) PepsiCo, Inc; Jun2008, p5,

A business analysis of PepsiCo Inc., a food and beverages company which manufactures,
markets, and sells snacks and carbonated and non-carbonated beverages is provided,
focusing on its strengths, weaknesses, opportunities for improvement and threats to the
company. Strengths include strong market position. Weaknesses include business
concentration. Opportunities for improvement include acquisitions and alliances. Threats
to the company include intense competition.
11) Del Monte Foods Company; Jun2008, p5, 4p

A business analysis of Del Monte Foods Co. is a producer, distributor and marketer of
packaged fruits and vegetables, is provided, focusing on its strengths, weaknesses,
opportunities for improvement and threats to the company. Strengths include dominant
market position. Weaknesses include customer concentration. Opportunities for
improvement include higher demand for organic products. Threats to the company
include intense competition.

12) General Mills, Inc.; Jun2008, p5, 5pA business analysis of General Mills Inc., which
is a leading producer of packaged consumer foods in the U.S., operating exclusively in
the consumer foods industry is provided, focusing on its strengths, weaknesses,
opportunities for improvement and threats to the company. Strengths include its strong
market position. Weaknesses include its customer concentration. Opportunities for
improvement include an increasing demand for private label products. Threats to the
company include increasing competition.
13) Journal of Marketing Research (JMR); Oct2010, Vol. 47 Issue 5, p866-882, 17p
Few studies have considered the relative role of the integrated marketing mix
(advertising, price promotion, product, and place) on the long-term performance of
mature brands, instead emphasizing advertising and price promotion. Thus, little
guidance is available to firms regarding the relative efficacy of their various marketing
expenditures over the long run. To investigate this issue, the authors apply a multivariate
dynamic linear transfer function model to five years of advertising and scanner data for
25 product categories and 70 brands in France.
14) Coloring Dairy Foods. Source: Dairy Foods; Sep2011, Vol. 112 Issue 9, p44-50, 7p
An interview with several food color suppliers including Jody Renner-Nantz, Emina
Goodman, and Rodger Jonas is presented. Renner-Nantz says that avoiding certified
colors in dairy foods is not impossible, in which matching the hue of certified colors with
exempt colors will be the challenge. Goodman states that choosing the right color
becomes the brand positioning decision of the company. Jonas notes that improvement in
color expression and stability will be in for the food color industry
15) Lotte Group; Dec2011, p1-8,

A business analysis of the Lotte Group, a company that is engaged in foods, distribution,
tourism and other business endeavors, is provided, focusing on the strengths, weaknesses,
opportunities and threats (SWOT) faced by the company. Strengths include strong market
position. Its weakness is its ownership status. Opportunities for improvement include a
positive outlook for the hotel industry. Threats to the company include competition.

4.2. BACKGROUND OF THE STUDY

Brand positioning refers to “target consumer’s” reason to buy your brand in preference to
others. It is ensures that all brand activity has a common aim; is guided, directed and
delivered by the brand’s benefits/reasons to buy; and it focuses at all points of contact
with the consumer.
Brand positioning must make sure that:
• Is it unique/ distinctive vs. competitors?
• Is it significant and encouraging to the niche market?
• Is it appropriate to all major geographic markets and businesses?
• Is the proposition validated with unique, appropriate and original products?
• Is it sustainable - can it be delivered constantly across all points of contact with the
consumers?
• Is it helpful for organization to achieve its financial goals?
• Is it able to support and boost up the organization?
In order to create a distinctive place in the market, a niche market has to be carefully
chosen and a differential advantage must be created in their mind. Brand positioning is a
medium through which an organization can portray its customers what it wants to achieve
for them and what it wants to mean to them.
Brand positioning forms customer’s views and opinions.

4.3. RESEARCH PROBLEM

“The Comparative analysis of brand positioning of Nestle-Maggi and Nissin-Top
Ramen”
This is the comparative analysis to know that which brand of instant noodles is dominant
into the Indian market. How Maggi and Top Ramen both positioned themselves.

4.4. Research Objective:-

1) To know how the company is positioning their Brands.
2) To study preference of consumers towards the brands.
3) Identify weak areas and provide recommendations for the sales.

5. Research Methodology
Basically 'Research' means systematic investigation to establish facts or Principles or to
collect information on a subject. In the broadest sense of the word, the definition of
research includes any gathering of data, information and facts for the advancement of
knowledge. With this view the research is undertaken as under:-

5.1. Research Design:-

• Types of Research: -The research undertaken includes objective research. The objective
research was undertaken for consumer survey.
• Data Sources: - The data sources utilized for resource includes the primary data as well
as secondary data. The primary data was utilized for the consumer survey.
• Research Methods: - The methods utilized for research comprises of survey method.
The survey method was adopted for consumer survey.
• Research Technique: - For making the consumer survey the research technique adopted
was structured questionnaire.
• Type of Questions: - The Questions included in the questionnaire for consumer Survey
were mostly the closed ended ones.
• No of Questions: - The Questionnaire for consumers included only 10 questions.
• Population: - The consumer survey of 200 respondents was conducted in Vadodara in

areas like Alkapuri, O.p.Road, Fatehgunj, Manjalpur, and Uma.
• Sampling Method: -The Sampling Technique used was convenience Sampling

6. Data Interpretation and analysis
Q: 1 which Brand of noodles Do you prefer?
Brand Count of Brand

Maggi 127
Top
ramen 55
Other 18
Interpretation: Nestle Maggi is more preferable brand into the market other than top
ramen. More than 63.5% customer likes to purchase Maggi. The market share covered by
Top- Ramen is 27.5%. The market share covered by other companies is 9%.

Q: 2 what size pack do you generally purchase?
Quantity Count of Quantity

purchased Brand purchased
Small Maggi 50
Small Other 2
Top
Small ramen 22
Medium Maggi 49
Medium Other 9
Top
Medium ramen 10
Family Pack Maggi 28
Family Pack Other 7
Top
Family Pack ramen 23
Interpretation: 14% of customer purchase family pack of Maggi, 24.5% of customer

purchase medium size Maggi and 25% of customer purchase small pack of Maggi

Q: 3 how frequently do you purchase Noodles?
Frequency Brand Count of Frequency

Daily Maggi 8
Daily Top ramen 4
Weekly Maggi 71
Weekly Other 9
Weekly Top ramen 28
Fortnight Maggi 20
Fortnight Other 6
Fortnight Top ramen 12
Monthly Maggi 18
Monthly Other 1
Monthly Top ramen 8
Other Maggi 10
Other Other 2
Other Top ramen 3
Interpretation: frequency of purchasing Maggi is weekly 35.5% which is highest

Customer purchasing Maggi, daily, monthly or once in a fortnight is comparatively less

Q 4: which factors are Important for you while purchasing noodles?
Purchasing factors Brand Count of Purchasing factors

Brand Maggi 40
Brand Other 4
Brand Top ramen 19
Brand Maggi 14
Image Other 2
Image Top ramen 6
Packaging Maggi 8
Packaging Other 3
Packaging Top ramen 5
Price Maggi 28
Price Other 6
Price Top ramen 9
Quality Maggi 5
Quality Other 2
Quality Top ramen 3
Quantity Maggi 12
Quantity Top ramen 8
Taste Maggi 20
Taste Other 1
Taste Top ramen 5
Interpretation: customers give more importance to factors such as brand, price, and taste.
Importance to brand by Maggi customer is 20%, to price 14% and taste 10%

5: What factors satisfy you the most in your preferred noodle brand?
Satisfying factors Brand Count of Satisfying factors

Brand Maggi 42
Brand Other 4
Brand Top ramen 17
Packaging Maggi 23
Packaging Other 5
Packaging Top ramen 7
Price Maggi 16
Price Other 3
Price Top ramen 5
Taste Maggi 46
Taste Other 6
Taste Top ramen 26
Interpretation: On the basis of comparison the figures shows that the customers are
satisfied with the product’s brand and taste. In which customer are highly satisfied with
Maggi Taste 23% and brand 21%

Q 6: Which of these factors affect your purchase?
Factors affecting purchase Brand Count of Factors affecting purchase

Advertisement Maggi 54
Advertisement Other 7
Advertisement Top ramen 21
Attractive Display Maggi 15
Attractive Display Other 3
Attractive Display Top ramen 10
Brand ambassadors Maggi 10
Brand ambassadors Top ramen 2
Nutrition Maggi 30
Nutrition Other 6
Nutrition Top ramen 14
Suggestion from friends Maggi 18
Suggestion from friends Other 2
Suggestion from friends Top ramen 8
Interpretation: advertisement factor of Maggi with 27% highly affects the buying
decision of customers, nutrition 15% is the 2nd important factor affecting the buying
decision

Q: 7 which media of Advertisement influence you purchase?
Media Infl. Brand Count of Media Infl.

Display Maggi 4
Hoardings Maggi 12
Hoardings Top ramen 6
Newspaper Maggi 6
Newspaper Top ramen 6
Television Maggi 105
Television Other 18
Television Top ramen 43
Interpretation: Television as a media makes a huge impact in the buying decision of the
consumers. Impact of TV advertisement of Maggi on consumer is 52.5%
This is comparatively high among all the media.

Q 8: If your preferred brand is not available for repeat purchase than what
will you do?
Availability or non- Count of Availability or

availability decision Brand non-availability decision
Go to the other shop Maggi 64
Go to the other shop Other 4
Top
Go to the other shop ramen 30
Postpone your purchase Maggi 21
Postpone your purchase Other 7
Top
Postpone your purchase ramen 6
Switch over to other brand Maggi 42
Switch over to other brand Other 7
Top
Switch over to other brand ramen 19
Interpretation: if preferred brand is not available, 32% customers will go to other shop to
find Maggi, 21% customers will purchase another brand available and 10.5% customers
will wait for Maggi till I become available

Q 9: If another brand of the same product appears in the market will you
prefer to stop buying this brand & buy the new brand?
Alternative Brand Count of Alternative

Can't say Maggi 32
Can't say Other 2
Can't say Top ramen 18
I may consider Maggi 33
I may consider Other 7
I may consider Top ramen 16
No I Shall not Maggi 20
No I Shall not Top ramen 8
No, not at all Maggi 42
No, not at all Other 9
No, not at all Top ramen 13
Interpretation: 21% people are loyal customer to Maggi, if any new brand appears in the
market they won’t purchase or switch over to that brand. 16.5% Maggi customers may
consider the other brand and 16 % Maggi customers are confused regarding the
purchase of another brand.

6.1. Analysis of Brand with Availability or non-availability decision of

Product
Availability or non-availability Count of

Brand Decision Brand
Maggi Go to the other shop 64
Maggi Postpone your purchase 21
Maggi Switch over to other brand 42
Top
ramen Go to the other shop 30
Top
ramen Postpone your purchase 6
Top
ramen Switch over to other brand 19
Analysis: On the non-availability of Product 32% customers purchasing Maggi will go to

other shop. While only 15% purchasing Top Ramen will move to other shop and 10.5%
will postponed their purchase for Maggi and 3% for Top ramen

Analysis of available alternative Product in comparison to Brand
Alternative Brand Count of Alternative

Can't say Maggi 32
Can't say Top ramen 18
I may consider Maggi 33
I may consider Top ramen 16
No I Shall not Maggi 20
No I Shall not Top ramen 8
No, not at all Maggi 42
No, not at all Top ramen 13
Analysis: 21% respondents are loyal customer of Maggi, if any new brand appears in the
market they won’t switch over compare to Top ramen who may switch over. 16% Maggi
customer are confused regarding the purchase of other brand

Analysis of Purchasing factors, Satisfying factors and Factors affecting

purchase
Purchasing factors Satisfying factors Factors affecting purchase

Brand Brand Advertisement
Brand Brand Attractive Display
Brand Brand Brand ambassadors
Brand Brand Nutrition
Brand Brand Suggestion from friends
Brand Price Advertisement
Brand Price Nutrition
Brand Price Suggestion from friends
Price Brand Advertisement
Price Brand Attractive Display
Price Brand Nutrition
Price Brand Suggestion from friends
Analysis: while considering brand as a purchasing factor 9% respondents found brand as

a satisfying factor and advertisement as a useful media whereas while considering price
as a purchasing factor 2.5% respondent found brand as a satisfying factor and
advertisement as a factor affecting consumer buying decision

Analysis of Purchase frequency with age group
Frequency Age Brand Count of Frequency

Daily 15 To 25 Maggi 6
Daily 15 To 25 Top ramen 3
Daily 25 To 35 Maggi 1
Daily 25 To 35 Top ramen 1
Weekly 15 To 25 Maggi 35
Weekly 15 To 25 Top ramen 14
Weekly 25 To 35 Maggi 23
Weekly 25 To 35 Top ramen 6
Monthly 15 To 25 Maggi 8
Monthly 15 To 25 Top ramen 5
Monthly 25 To 35 Maggi 4
Monthly 25 To 35 Top ramen 2
Analysis: respondent between age group of 15-25 consume more Maggi in a week
That is 10.5% more than top ramen. Daily and monthly Consumption of Maggi and
TopRamen is comparatively less

7. FINDINGS
1) Nestle-Maggi brand is most preferable into the market because of their strong brand
positioning.
2) Most of the people focus on the taste/flavor, Brand – which is of paramount

importance for health, and price while purchasing the noodles.
3) From the research we can say that most of the people preferred only Maggi brand other
than competitors. –Brand power & Brand legacy can be the other reason for escalated
sales.
4) Top Ramen is also a good brand but they failed to position their brand properly into
the Indian market.
5) Advertisement on Television media is more suitable for the noodle manufacturing

company to enhance their brand.
6) When the preferred brand of noodles is not available at one place than people go to
search at other place or may switch over to other brand.

8. LIMITATIONS OF THE STUDY

• The Data collected from the customers might not be very accurate to obtain the desired
information.
• The sample size taken is small to make a universal statement
• The final conclusion can be also affected by some of the extraneous variables.
• Though the study represents the position of Nestle-Maggi in Vadodara. Due to small
sample size, the finding may not be a true representative and it cannot be generalized
across India.
• Biasness of the respondent.
• Lack of sufficient information.

Conclusion
Companies must focus more on sale of family size package by providing discount
So that customer purchases it more.
Companies must improve their other factors for sale of its product other than price, brand
and taste
Top ramen and others brands have to work on their taste to compete in market against
Maggi.
Top ramen have to advertise more about its product and nutrition on television
An effective media for positioning
Companies have to focus on availability of brand at each and every place so that
consumer don’t switch over to other brands
Companies should keep retaining their loyal customers by maintain their brand image and
quality

Annexure
Questionnaire
NAME:
GENDER:
AGE:
PLACE:
1). which brand of noodles do you prefer?

Maggi
Top ramen
Others
2). what size pack do you generally purchase?

Small
Big
Family Pack
3). How frequently do you purchase noodles?

Once in a fortnight
Daily
Weekly
Fortnight
Monthly
Other

4) Which factors are important for you while purchasing noodles (tick in the desired
column)?
Taste
Price
Quality
Packaging
Brand
Image
Quantity
5) Which factor satisfies you the most in your preferred noodle brand (tick in the desired
column)?
Taste
Packaging
Price
Brand
6) .Which of these factors affects your purchase?

Advertisement
Suggestion from friends
Brand Ambassadors
Nutrition
Attractive display
7).Which media of advertisement influence your purchase?

Television
Newspapers
Hoarding
Display

8).If your preferred brand is not available for repeat purchase then what will you do?
Postpone your purchase
Switch over to other brand
Go to the other shop to search for your preferred brand
9. If another brand of the same product appears in the market, will you prefer to stop
buying this brand and buy the new brand?
No, not at all
I may consider
No, I shall not
Can’t say
Que10. If you don’t like to change to the new brand, then what are the reasons
for continuing to purchase the old brand?
THANKS

BIBLIOGRAPHY
Kothari, C.R. (2004) Second Edition. Research Methodology, New Age International Pvt.
Ltd.
Kotler, Philip (2009). Thirteenth Edition Marketing Management, Dorling Kindersley

(India) Pvt. Ltd.
http://www.nissinfoods.com/company/about.php
http://www.symscio.com/Services/Reporting
http://www.google.co.in/url?sa=t&rct=j&q=brand+positioning&source
http://www.nestle.in/brands/maggi2-minutenoodles
http://en.wikipedia.org/wiki/Maggi
https://www.maggi.in/range.aspx
https://marketingcrow.wordpress.com/2014/10/12/brand-positioning-in-noodles-market/
http://articles.economictimes.indiatimes.com/2012-11-28/news/35408963_1_instant-
noodles-category-knorr-soupy-noodles-maggi-noodles

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Study of Brand Positioning of Nestle Maggi And Nissin Top Ramen

PARUL INSTITUTE OF MANAGEMENT 1

1.1. Industry size

In the U.S., consumers spend approximately US$1 trillion annually on food, or

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1.2. Food processing

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1.3. Wholesale and distribution

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1.5. Food industry technologies

1.7. Media & Marketing

1.8. Research and development

PARUL INSTITUTE OF MANAGEMENT 5

1.9. Prominent Food Companies

2. Hindustan Unilever (Knorr Soupy Noodles)

3. GlaxoSmithKline Consumer Healthcare (Foodless)

4. Capital Foods Ltd. (Ching's Secret)

5. ITC (Sun feast Yippee noodles)

6. CG Foods India Pvt. Ltd. (waiwai)

7. Future Group (tasty Treat)

PARUL INSTITUTE OF MANAGEMENT 6

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2.1.2. BRAND STORY

2.1.3. Maggi in India

PARUL INSTITUTE OF MANAGEMENT 9

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2.2. NISSIN-TOP RAMEN

Nissin Foods are also Purveyors to the Imperial House of Japan.

PARUL INSTITUTE OF MANAGEMENT 11

• Nissin Chikin Ramen

• Nissin Cup Noodles

• Bowl Noodles, Rich and Savory, and Hot and Spicy

• Spice Route Bowl and Boxes, Sichuan, Korean and Thai

• NuPasta Bowls and bags

2.2.3. Core Value-Quality policy

PARUL INSTITUTE OF MANAGEMENT 12

2.2.4. Quality & Commitment

2.2.4.2. Safety as an exacting science

2.2.4.3. Assuring food safety at the source

2.2.4.4. Food safety in our Manufacturing

PARUL INSTITUTE OF MANAGEMENT 13

- The Economic Times, a prominent newspaper in India, in 2003.

- Business Week, a prominent business magazine, in 2006.

PARUL INSTITUTE OF MANAGEMENT 14

Trends in Indian noodle market

PARUL INSTITUTE OF MANAGEMENT 15

Opportunities in Indian noodle market

3.2. Overview of world market

Updated on May 10, 2014

Country / Region 2011 2012 2013 2014

1 China, Hong Kong 45,810 42,530 40,860 42,300

PARUL INSTITUTE OF MANAGEMENT 16

Growth of the Maggi Company

•Market positions stronger across regions and categories

•Good growth in developed markets; double-digit growth in emerging markets

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INTRODUCTION OF THE STUDY

2) Dot Foods, Inc. Source: Dot Foods, Inc.; Jun2007, p1, 8p

3) McCormick& Company, Inc. Apr2007, p1, 9p

4) Delhaize "Le Lion" SA; Jun2007, p5, 4p

PARUL INSTITUTE OF MANAGEMENT 19

5) Frito-Lay; Jun2007, p1, 7p